TAPEI, Taiwan, May 11, 2026 (GLOBE NEWSWIRE) — TrendForce’s latest research into the Micro LED industry highlights how generative AI is driving rapid growth in demand for high-speed optical communications. Micro LED technology offers power consumption as low as 1–2 pJ/bit and ultra-low bit error rates (BER) of ≤10⁻¹⁰. It’s also emerging as one of the three major short-distance, high-speed intra-rack transmission solutions for scale-up data center networks, alongside active electrical cables (AEC) and VCSEL-based near-packaged optics (VCSEL NPO). As a result, TrendForce projects that the Micro LED CPO optical transceiver market will reach US$848 million by 2030.
Global supply chain players are expanding into optical communications and optical interconnects. Microsoft has introduced the MOSAIC Micro LED CPO architecture, while MediaTek provides integrated active optical cable (AOC) solutions. AEC leader Credo Technology Group acquired Hyperlume in 3Q25 to broaden its optical interconnect portfolio.
Startup Avicena has developed its ultra-low-power LightBundle™ technology and is preparing to launch a 512 Gbps Micro LED optical interconnect solution, with an 896 Gbps version scheduled for advancement in 2Q26 to further improve data transmission efficiency and power consumption.
Meanwhile, ams OSRAM has signed a development agreement with a leading global AI data center infrastructure partner to accelerate the commercialization of Micro LED optical interconnects. Its in-house solution—targeted for launch in 2027—is expected to integrate Micro LED chips, optical components, and dedicated ASICs.
In Taiwan, AUO is combining technologies from Ennostar and Tyntek to launch Micro LED CPO on glass RDL interposers. This enables customers to adopt the technology without needing dedicated mass-transfer equipment. Innolux is also expected to utilize resources from bEMC to gradually enhance its vertical integration and competitive edge. PlayNitride has already partnered with Brillink to expand into this sector. In China, HC Semitek has collaborated with Shanghai New Vision Microelectronics to develop Micro LED optical interconnect technologies.
TrendForce highlights that as global alliances continue to take shape, defining product specifications and completing customer sample validation will still require time. Therefore, shipments of Micro LED CPO optical transceivers are expected to begin scaling significantly in the second half of 2028, eventually contributing approximately $848 million in market value by 2030.
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About TrendForce
TrendForce is a global leader in technology industry analysis and consulting services. With deep expertise spanning foundry, DRAM, HBM, NAND Flash, AI servers, robotics, near-eye displays, display panels, LEDs, MLCC, and green energy, it also offers in-depth research into key market drivers such as AI, automotive technologies, 5G/6G communications, LEO satellites, and the IoT.
Backed by a team of top industry professionals, TrendForce has been at the forefront of global market research for over 25 years. More than 60% of its clients are among the world’s top 500 companies. TrendForce’s global footprint includes Taipei, Shenzhen, Silicon Valley, New York, and Tokyo. With timely and strategic industry analysis, TrendForce delivers the critical information that empowers businesses to make smarter, faster decisions.
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